In a firm the cost and financial transactions are integrated. Under this situation the firm paid wages amounted to ₹1,20,000 in which 25% is indirect in nature. Then the journal to be passed to account the indirect wages

CS Executive · Cost and Management Accounting · PYQS · December 2017
In a firm the cost and financial transactions are integrated. Under this situation the firm paid wages amounted to ₹1,20,000 in which 25% is indirect in nature. Then the journal to be passed to account the indirect wages is: (A) Wages Control A/c Dr 30,000 To Bank A/c 30,000 (B) Factory overheads Control A/c Dr. 30,000 To Wages Control A/c 30,000 (C) Factory overhead Control A/c Dr. 30,000 To Bank A/c 30,000 (D) No need of separate entry
(A) Wages Control A/c Dr 30,000 To Bank A/c 30,000
(B) Factory overheads Control A/c Dr. 30,000 To Wages Control A/c 30,000
(C) Factory overhead Control A/c Dr. 30,000 To Bank A/c 30,000
(D) No need of separate entry

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Integrated & Non-Integrated Accounts

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